Indian Equity Indices Close Higher Following US Fed Rate Cut

Indian frontline equity indices closed in the green on Thursday, spurred by the US Federal Reserve’s unexpected decision to cut interest rates by 50 basis points. The Sensex rose by 236 points, or 0.29 percent, finishing at 83,184, while the Nifty gained 38 points, or 0.15 percent, closing at 24,415.

However, selling pressure affected midcap and smallcap stocks. The Nifty midcap 100 index fell by 400 points, or 0.67 percent, to 59,351, and the Nifty smallcap 100 index dropped 244 points, or 1.26 percent, to 19,144.

Sector Performance and Technical Insights

Among sectoral indices, Auto, financial services, FMCG, real estate, and private banks were major gainers. In contrast, IT, PSU banks, pharma, metals, media, and energy sectors lagged. Top gainers in the Sensex included NTPC, Kotak Mahindra Bank, Titan, and HDFC Bank, while L&T, TCS, and Tata Steel were among the top losers.

Rupak De, Senior Technical Analyst at LKP Securities, noted a “shooting star pattern” on the Nifty’s hourly chart, suggesting a potential bearish reversal. He stated, “The Nifty might correct down towards 25,100-25,000 if it falls below the support at 25,350.”

Amit Golia, Group CEO of MarketsMojo, highlighted that the market’s focus may shift to the impact of rate cuts on corporate earnings and economic health, especially amid weakening global demand. Foreign institutional investors bought equities worth Rs 1,153 crore on September 18, while domestic investors purchased equities worth Rs 152 crore on the same day.